Education Planning
"Education is our passport to the future, for tomorrow belongs to the people who prepare for it today."
— Nelson Mandela
Putting children through college is one of the largest expenses most families will ever face. Recently, education costs have dramatically outpaced inflation. According to the US Department of Education, the average annual cost of public school increased 6.5 percent each year over the last decade. This means that by 2030, annual public tuition will be $44,047. The total cost for a four-year degree from a public, in-state university will be more than $205,000. 1, 2 Proactive investing can make paying for education easier. There are several ways to optimize savings for education.
Education funding options include:
- 529 Savings Plan
- Coverdell ESA (formerly known as Educational IRA)
- Custodial Account (UGMA/UTMA)
- Trust
The most popular way to save for educational expenses is by investing into a 529 Savings Plan. Each of these options has advantages and considerations that require evaluating your specific goals and situation. When you consider financial aid programs, scholarships, and family contributions; saving for university expenses becomes quite complex. At Financial Plans & Strategies, we can help you evaluate your options and develop a plan to provide for your education or the education of your children or grandchildren. Contact us today to learn more.
Sources:
(1) The American Funds Group College Savings Calculator